The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-05-19
CLAUSE FOUR AS A YOKE.
THE QUEEN AND CRESCENT ROAD
ASKS ITS SUSPENSION.

Competition With Water Routes the
Ground on Which the Request is
Based - Danville's Board of Trade
Wants the Law Enforced-Judge
Cooley Explains the Powers of the
Commission.
WASHINGTON May 1S-The Interstate
Commerce Commission devoted some time
to-day to hearing arguments upon the
application of the Queen and Crescent Rail-
way System for a permanent suspension of
the fourth section of the interstate com
merce law. John c. Gault, General Man
ager of the system, first addressed the COM
mission. He described the line Of the
Queen and Crescent road; pointing out its
general proximity to the Mississippi river
and other water routes. The system, he
said, had considerable business which it
would like to retain, and to this end he
hoped to obtain permanent relief from wa
ter competition
GROWING sFEcrFIc.
Chairman Cooley inquired at what points
they sought reliefs
Mr.. Gault replied that they wished to be
relieved from this competition wherever it
pared by the officers of the road, setting out
the effect of water competition in reducing
cotton rates. with view to demonstrating
the Justice of their request to have
the temporary suspension made per-
manent. 1t was stated in the
paper that the practice of steamboat lines
has been to make daily such rates as may
be necessary to enable them to secure traffic.
The chief ground for asking relief arises
from the fact that the roads desire to par
ticipate to certain extent in this traffic,
which they cannot afford to do if they are
required to reduce all of their
rates in proportion to those
necessary to meet water competition,
THE EFFECT ON THE TOWNS
Chairman Cooley asked if, in fixing rates,
any account was taken of the effect upon a
town, or were they fixed simply in the in
terest of the roads. Something had been
said about competition as reason why
rates should be cut down.
Mr. Gault replied that his road had little
to do with fixing rates. That was done by
the Southern Railway Association. He did
not wholly approve of the system that gov
erned the relation of these rates. He be-
lieved in fixing rates that would be just to
all, and he would rather have dozen thriv-
ing towns on his road than large city. His
road was willing and anxious to give the
from water competition; that meant the
Ohio and Mississippi rivers chiefly.
SOME STUPIDITY.
In answer to Commissioner Bragg, the
speaker explained BY illustrating his reason
for holding that the system of fixing rates
followed by the Southern Railway Associa-
ton, which made every local station COM
petitive point, resulted in very much higher
rates and was characterized i'll some cases
by stupidity. To the chairman, Mr.. Gault
said that even if their request was granted
his company did not propose TO make any
local rate between Cincinnati and Atlanta
higher than the through rate. Cotton was,
he said, about the only interest he thought
of which had been favored with special rate.
PIG IRON RATES.
The roads would be glad to include pig
iron in special arrangement making rates
dependant upon the market price of iron.
This could be done without violating the
long and short haul clause. He did not be
lieve that any special concession was neces-
sary to develop the large lumber industry
of the South. Lumber was in great de-
nand in the North and the business was con-
consumed great quantities of it. He did
not think that there was anything the pig
iron or lumber men need worry about at
ali.
CHANGES SINCE THE WAR.
The chairman inquired il rates were fixed
with relation to their effect upon the inter-
est of particular towns
Mr.. Gault-The management of the South
ern roads has been wise. The system of
rates is peculiar to the South. When the
country was in poverty after the war plant
ers had to borrow money to put in their
crops. Larger towns made loans, and
through that advantage were enabled to
control trade and acquire the benefits of
low rates.
The Chalman-But you think the time
has come when that system should ceases
Mr.. Gault-Yes.
The Chairman-Is there no other compe-
titions than water competition that would
Justify the intervention of the commission?
Suppose a State road free from the jurisdic-
tion of the commission should push an
interstate road, suppose the interstate road
was on the border of Cana1a.
Mr. Gault-Where there are no water
rates we would not ask for relief. | can't
speak advisedly with reference to Canadian
competition, but my general belief Is that
where there were other elements beyond
water traffic in competition road had no
right to ask relief If competitors did busi-
ness at cheap rate every road should do it
MS cheaply. desire to be understood that
| do not antagoniZe petitions put in by other
Southern railroad companies.
The Chairman-The commission does not
understand that you have endeavored to do
any such thing.
DANvILLE COMPLAINS
Representative Cahell, of Virginia, ap-
peared for the Board of Trade of Danville,
Va, and made complaint against the
Richmond and Danville railroad. Since
that road had acquired control Of the Vir-
ginia Midland, he said, rates had been
greatly advanced, and the interests OF the
town ruined The board charged that the
Richmond and Danville, Virginia Midland,
and other Western and Northern connec-
tions, have violated the flrst, third and
other sections of the interstate law by means
of direct and indirect drawbacks in favor Of
other places and against Danville, and by
charging other points less for long haul
than was charged 10 Danville for short
hauls.
TEE REQUESTS FOR SUSPENSION.
The requests for suspension Of the fourth
section came mainly from railroad corpora
tions, which it was the intention of Congress
TO curb la the interest of the people. One
grant of such a claim would be a precedent
for further demands, and the law itself,
which was reasonably clear and fair would
be converted into measure for the oppres-
sion of those whose rights itwas intended to
protect. When Mr. Cabell had concluded,
it was suggested that his general charges
should be put in specified form, 50 that the